Nintendo unveils 3DS Netflix, Super Mario at GDC

Nintendo's president took the main stage at the Game Developers Conference in …

Nintendo president Satoru Iwata shows the first screenshots of a new Super Mario game for Nintendo 3DS at his Game Developers Conference 2011 keynote

Netflix and Super Mario are coming to the Nintendo 3DS.

At Nintendo’s keynote presentation Wednesday morning at Game Developers Conference, the company said that the streaming movie service would be available on its new handheld game system in late summer. But perhaps more pertinent to the gamers in attendance was the news that the team behind the stellar Super Mario Galaxy is creating a new game in the series for the glasses-free 3D handheld.

The keynote, presented by Nintendo president Satoru Iwata with a brief appearance from Nintendo of America chief Reggie Fils-Aime, was otherwise light on substance. Iwata discussed his views on what makes a gaming experience a “must-have” phenomenon, and Fils-Aime said that 10,000 AT&T Wi-Fi hot spots in the US would let 3DS owners log in and play games for free starting in late May.

Across the street from GDC, Apple was expected to announce a new version of the iPad concurrently with Iwata’s presentation. Iwata closed the speech with a direct shot at the App Store.

“The objectives of smartphones and social network platforms are not at all like ours,” he said. “For them, content is something created by someone else. Their goal is just to gather as much software as possible because quantity is what makes the money flow. Quantity is how they profit. The value of video game software does not matter to them.”

“Is making high-value games a top priority, or not?” he asked the assembled crowd of game developers.

Our liveblog coverage is below.

Nintendo’s ready to kick things off at Game Developers Conference.

At 9am Pacific, Nintendo president Satoru Iwata will take the main stage at GDC 2011 to talk about the last 25 years of gaming, the post-Super Mario era. But since this is a GDC keynote, he is also expected to drop some big news about Nintendo 3DS, or Wii, or something else entirely.

Across the street, Apple is prepping for its own conference, presumably about the iPad 2.

8:33 — Front row center. Rumor going around that Charlie Sheen will be on stage. Ha ha! Except you never know with that guy.

8:44 — If you’re following along at home, you can play GDC Keynote Bingo courtesy NeoGAF member Cheesemeister.

8:53 — Apparently my seat position means that I will appear in many different photos of the audience for this event. Look for me in your favorite newspaper tomorrow! (Note: Newspapers are a thing people used to read in the morning.)

9:00 — It’s starting now! Right on time! Sit down!

9:01 — GDC director Meggan Scavio takes the stage to introduce Iwata and welcome people to the 25th GDC.

9:02 — Some A/V person screws up and accidentally plays part of a Zelda: Skyward Sword trailer while Scavio is giving her introduction. Whoops!

9:04 — Iwata on stage, talking about what game developers are saying these days—quoting Lorne Lanning as saying there’s not much “stability,” Mike Capps of Epic saying that people are taking “bigger gambles.”

9:05 — But what we need to remember most, he says, is “Content is king.” Without quality content, says Iwata, there is nothing—there is no game industry. “You are the center of the video game universe,” he tells the assembled developers.

9:06 — Iwata getting into his historical discussion of the last 25 years. Shows an old photo of himself with long hair when he worked at HAL Laboratory programming games.

9:07 — “I believed that the software I was making was technically superior to Mr. Miyamoto’s.” But, he says, it is the job of game developers to learn from each other, and Miyamoto’s games outsold his by a “huge margin.” Engineering, he realized, was not as important as imagination.

9:09 — Talking about how teams used to be smaller and people had to wear many different hats—one day you were a game designer, the next day you were a sound designer, the next day you had to decide who was going to go out and buy food for everybody. “We were video game cavemen,” he said—primitive, compared to today.

9:11 — Expanding the audience for games has been a major strategy for Nintendo, he says. He’s been trying to figure out how big the growth is—not just in terms of sales, but in terms of who the players of each device are. Nintendo has been conducting large-scale surveys twice a year throughout the world, ever since 2005, he says.

9:13 — The number of active players of traditional game consoles jumped up from 2007 to 2010, Iwata says. The DS and Wii have been the “driving force in expanding the US gaming population,” he says.

9:15 — Social network games and social games are two different things, Iwata says. He’s describing what a social network is and points out that the leading activity on these networks is games. “But this is much different than broadly defining a game as ’social,’” he says. An early computer video game called Spacewar was the first game to offer head-to-head competition, he said, and people played it across early networks.

9:17 — Game consoles like Atari 2600 and NES used to include two controllers. Creating multiplayer games using handheld systems was harder, he says, but millions of people used cables to play Tetris head-to-head on Game Boy. Pokemon continued this trend, and included wireless communication starting in 2004.

9:19 — Name-checks Call of Duty and Microsoft’s “considerable investment” into Xbox Live as other major inroads into “social gaming.”

9:20 — “Must-have” features are the kinds of things that every gamer wants, lest he be left behind. Sometimes this can be delivered by hardware. For example, the first Game Boy—for the first time, games could be carried and played wherever you go. But, he says, creating “must-have” with technology alone is not easy.

9:21 — Name-checks Angry Birds in a list of “must-have” games that also includes Sonic, Tetris and Guitar Hero.

9:22 — But another way to have a “must-have” product is to create that social experience—like World of Warcraft.

9:33 — Mario has remained popular “only because he has changed.” Mario games need to evolve always and keep presenting new experiences.

9:25 — Tetris was the first game to attract a female audience in a meaningful way. There was also The Sims. “Many of you predicted it would never find an audience,” he said, “because there was no way to win or lose.” The series has sold 125 million copies.

9:26 — “Must-have” games offer “universal appeal,” he says. He wants people to attend the Donkey Kong panel tomorrow where they will talk about how they made it a global game.

9:28 — Speaking of globalization, he points out that Kirby’s original name was “Tinkle Popo.” Laughs. Nintendo of America changed his color from pink to white because they didn’t think a pink character would fly in the US. “Maybe they didn’t think I would notice. I did.”

9:30 — “Let me return to the idea of ‘must-have’ in terms of the future. Selfishly, I hope people decide the next ‘must-have’ is the Nintendo 3DS.” Laughs.

9:31 — Nintendo selected the pre-installed software on the 3DS for a reason, Iwata says: They will “compel social interaction” and make people say, “Hey, you’ve got to see this!”

9:32 — At Nintendo’s headquarters, employees have been leaving their workstations, wandering the building to collect data on their 3DS. Iwata says he’s one of them.

9:33 — “Nintendo can do better,” he says. “Our WiiWare and DSiWare services have not operated as well as they should.”

9:34 — Iwata tags in his tag-team partner Nintendo of America president Reggie Fils-Aime, who is now on stage talking about Nintendo’s plans for downloadable content in the US.

9:36 — Nintendo 3DS will serve up movie trailers in 3D, including Green Lantern. “We’re offering studios a distribution vehicle to a large and motivated userbase to promote their upcoming releases in 3D without the need for glasses,” he says. Also a “short-form video service” which will include comedy, music videos, and other elements “curated by Nintendo for your enjoyment.” “We’ll do the primary content selection.”

9:38 — Nintendo is “investing” to help “accelerate the process” of getting 3D content produced. Nintendo 3DS will record 3D video footage eventually, Fils-Aime says. “Stay tuned for an update” is all he will say about that.

9:39 — Fils-Aime is talking up the 3DS location-based abilities like StreetPass and SpotPass.

9:41 — In “late May,” over 10,000 AT&T Wi-Fi hot spots will be able to automatically and without charge connect to Wi-Fi on their 3DS and download info, play games.

9:42 — Nintendo 3DS will “maximize your distribution opportunity,” Fils-Aime says, thanks to these features that will push content to 3DS automatically. You can push SpotPass content for a game even if the user doesn’t own that game.

9:43 — Nintendo 3DS eShop will contain existing DSiWare, Virtual Console (including Game Gear and TurboGrafx-16 games, he announces). There will also be 3D classics—old games “remastered” in 3D. And the shop will promote games both digital and retail with trailers and other information. “One stop shopping for both unique and nostalgic game experiences.”

9:45 — That “late May” date is when this update, with the eShop, Web browser, and AT&T WiFi hot spot connection will all launch, Fils-Aime says.

9:47 — Iwata back on stage talking about Mario games. Sounds like he’s getting ready to announce one for 3DS.

9:49 — Nintendo will release a new Super Mario for Nintendo 3DS. It’s a full 3-D game developed by the Super Mario Galaxy team at EAD Tokyo. The logo features a small tail on the end of the word “Mario.” Seems like the famous raccoon tail suit from Mario 3 will make a comeback. We’ll find out about that at E3, he says. No trailer, just screenshots. (Inserted above.)

9:51 — Iwata shows a trailer of Zelda: Skyward Sword for Wii. It’s Zelda’s 25th anniversary, he says, and shows a logo for a 25th anniversary celebration of the series. (My take is that we’ll see some kind of product like that Mario All-Stars box set for Zelda.)

9:54 — The big game announcements having seemingly come to a close, Iwata is back talking about the game industry at large. It seems like he’s wrapping things up. “Our business is dividing in a way that threatens the continued employment of those of us who make games for a living.”

9:57 — Iwata asks, “Is making high-value games a top priority, or not?” He’s making the case for making high-quality content versus cheap downloadable stuff. He doesn’t specifically mention iPhone, but this is clearly what he’s angling at right now.

9:58 — “The objectives of smartphones and social network platforms are not at all like ours,” he says, referring to traditional gamemakers like Nintendo and Sony. “For them, content is something created by someone else. Their goal is just to gather as much software as possible because quantity is what makes the money flow. Quantity is how they profit. The value of videogame software does not matter to them.”

10:00 — “What we produce has value, and we should protect that value. All is not lost,” he says.

10:01 — How can your game “get noticed?” You have to capture players’ attentions immediately. It must be quick and easy for people to describe the unique nature of your game to others. “If both of these conditions are met, you could reach the tipping point… where your game begins to sell itself.”

10:02 — The single word that defines this challenge is “innovation.” “Is there something considered impossible that we might make possible?”